Bank Negara gives 1MDB reasonable time for restructuring: Muhammad

Bank Negara Malaysia (BNM) has given 1Malaysia Development Berhad (1MDB) a 'reasonable' time to bring back the US$1.83 billion it had invested abroad.

BNM Governor Datuk Muhammad Ibrahim said the central bank has not set a dateline as the restructuring process would take up a long time.

Muhammad said 1MDB has stated their commitment to pay the compound before its May 30, 2016 dateline.

"Restructuring will take time and they need to negotiate the settlement. So let's give them reasonable time to settle the obligation.

"A reasonable time because when it comes to debt restructuring and rescheduling, it will take a while. It involves a lot of parties. The negotiation and settlement will take some time depending on the complexity of the situation," Muhammad told reporters after presenting first quarter performance of the nation's economy here today.

However, he refused to reveal the amount of compound summoned to 1MDB.

On April 28, BNM had issued a letter of administrative compound to 1MDB for its failure to fully comply with directions issued under the Financial Services Act 2013.

READ: Bank Negara fines 1MDB

READ: Compound will be paid on or before due date, 1MDB tells Bank Negara

This includes requirement for 1MDB to repatriate monies remitted abroad following the revocations of the three permissions granted by BNM to 1MDB in 2009, 2010 and 2011.

1MDB also failed to submit evidence and documentation specified by BNM to justify its inability to fully comply with the repatriation order.

The payment of the compound marks the conclusion of the investigation by BNM on the contraventions to the rules and regulations of the central bank.